Cracker Barrel's chief executive is quitting a year after the company faced a widespread backlash over its controversial rebrand. The restaurant chain said on Monday Julie Masino will leave in August, with the former boss of Bloomin' Brands, David Deno, taking over.
Its rebrand sparked a national controversy, with critics including President Trump, who urged the chain to restore its original logo after critics accused it of abandoning its heritage. Masino did not issue a statement about her resignation, but Cracker Barrel's management thanked her for her tenure.
Masino will be paid an estimated $4.6m as part of a departure package, according to the company's 8-K filing, external. Cracker Barrel declined to comment, referring the BBC instead to the filing.
What prompted the leadership change?
The leadership change comes after a turbulent period for the business, which runs nearly 660 country-themed store and restaurants sites across 44 US states. Plans to simplify the classic logo and modernise store interiors sparked fierce resistance from loyal diners who argued the changes stripped away the brand's nostalgic Southern charm.
The misstep highlighted the delicate balance facing brands hoping attract younger audiences without alienating their core, longstanding customer base. At the time, critics described the rebrand as
“soulless”and
“generic”.
Jo-Ellen Pozner, an associate professor at Santa Clara University's Leavey School of Business, said the leadership swap
“seems to reflect the polarization many Americans feel today”.
She added that doubling down on conservative values may help win back vocal loyalists but
“paints the company into a corner”.
“Changing anything about the menu, decor, or branding at this point is dangerous, so there are few levers to attract new customers,”Pozner said.
President Trump later congratulated the chain's reversal, external.
How is the company handling the transition?
In his own statement on the transition, Deno paid tribute to Cracker Barrel's
“deep connection with guests across generations”. Masino will stay at the company until October to help Deno through the transition.
Is Cracker Barrel also under financial pressure?
In addition to public scrutiny, Cracker Barrel has struggled financially. Shares of the Tennessee-based chain fell by more than 2% after Monday's announcement and are still around a fifth lower than this time last year.
Cracker Barrel's shares have struggled because sales are falling and customer traffic is slowing, all while restaurants grapple with soaring costs. The transition comes as Cracker Barrel faces fierce competition from chains like Denny's and IHOP, which have been fighting to take market share among budget-conscious diners seeking classic American comfort food.
Key Facts
- Julie Masino will leave in August and stay until October to help with the transition.
- Former Bloomin' Brands chief David Deno will take over as CEO.
- Masino is set to receive an estimated $4.6m departure package, according to the company’s 8-K filing.
- Cracker Barrel operates nearly 660 country-themed store and restaurant sites across 44 US states.
- Shares fell by more than 2% after Monday's announcement and are around a fifth lower than a year ago.
